MobiKwik parent shares jump 12% after six-day slump

Shares of One MobiKwik Systems, the parent firm of Indian payment provider MobiKwik, rose 12% on September 1, 2025 ending a six-day losing streak.

The stock remains 65% below its December 2024 post-listing high of ₹698.3 (US$8.38).

Trading volume hit 22 million shares, far above the 20-day average of 700,000.

MobiKwik listed at a 58% premium to its issue price in December 2024, with its ₹572 crore (U$68.64 million) IPO subscribed nearly 120 times.

Shares last traded 7.7% higher at ₹236.76 (U$2.84), up 1% over the past month.

🔗 Source: CNBC TV-18

🧠 Food for thought

1️⃣ Institutional investor exits can paradoxically boost stock prices despite weak fundamentals

MobiKwik’s 12% surge following ADIA’s stake sale demonstrates how major institutional moves can create positive momentum even when underlying business metrics remain challenging.

The Abu Dhabi Investment Authority sold its entire 2.1% stake worth ₹39.2 crore, yet the market reacted positively with trading volumes spiking to 2.2 crore shares, over 30 times the typical daily average of 7 lakh shares 1 2.

This occurred despite MobiKwik reporting widening losses of ₹41.9 crore in Q1 FY25 compared to ₹6.6 crore the previous year, alongside a 20.7% revenue decline 1.

The market’s positive response likely reflects investor interpretation that new institutional buyers BofA Securities Europe and SI Investments, who acquired 1.15% for ₹22.1 crore, see value others might have identified 2.

This shows how institutional ownership changes can drive short-term price movements independent of fundamental performance, particularly when accompanied by high trading volumes that suggest broader market interest.

2️⃣ IPO euphoria often creates unsustainable valuations that reality eventually corrects

MobiKwik’s journey from IPO darling to significantly undervalued stock illustrates the persistent gap between initial public market enthusiasm and actual business performance.

The company’s IPO was oversubscribed by nearly 120 times, receiving bids worth ₹40,000 crore against the ₹572 crore offering, with the stock listing at a 58% premium 1.